In the playoffs, the Pacers swept the Milwaukee Bucks 3-0 in the first round, and the 6th-seeded Philadelphia 76ers 4-0 in the semifinals. The Pacers advanced to the Eastern Conference Finals for the second consecutive season, and the fourth time in six seasons. Once again, the Pacers were up against the New York Knicks. Despite being the 8th-seeded team in the Eastern Conference, the Knicks upset the Pacers in six games to reach the NBA Finals for the second time in six seasons.[3] It was also the final season the Pacers played at Market Square Arena, moving to the Conseco Fieldhouse the following season. Also following the season, Antonio Davis was traded to the Toronto Raptors.

For the season, the Pacers added gold pinstripe alternate road uniforms which lasted until 2005.